Tesla’s India Arrival: First Mumbai Showroom Opens with Model Y at Premium Prices

Mumbai – Tesla, the electric vehicle giant led by Elon Musk, has officially entered the Indian market with the opening of its first showroom in Mumbai’s upscale Maker Maxity Mall in the Bandra Kurla Complex (BKC). The launch, marks a significant milestone for Tesla as it introduces its premium electric vehicles to one of the world’s fastest-growing automotive markets.

The inaugural showroom will showcase Tesla’s Model Y, with the on-road price set at Rs 61 lakh for the standard variant and Rs 59.89 lakh for the rear-wheel-drive model. These prices reflect India’s high import duties, which impose a 70% tariff on fully imported vehicles priced below $40,000. Five Model Y units, manufactured at Tesla’s Shanghai facility, have already arrived in Mumbai to kick off the launch.

Tesla’s entry follows years of negotiations and regulatory hurdles, with Musk previously citing India’s steep import tariffs as a barrier. Recent government incentives, including a new EV policy offering reduced import duties for manufacturers investing in local production, have facilitated this move.Prime Minister Narendra Modi’s discussions with Musk, including a phone call in April, underscored potential collaborations in technology and innovation.

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The Mumbai showroom, spanning 4,000 square feet, is strategically located near the city’s airport and Apple’s flagship store, positioning Tesla in a premium retail hub. A second showroom is planned for New Delhi by late July, signaling Tesla’s intent to expand its footprint. However, Union Heavy Industries Minister H.D. Kumaraswamy clarified in June that Tesla has no plans for local manufacturing at this stage, focusing instead on retail operations to gauge market demand.

Customers can begin configuring and ordering vehicles next week, with deliveries expected to start in late August. The launch comes as Tesla faces declining sales in markets like China and Europe, making India’s growing EV market an attractive opportunity. While the Model Y’s premium pricing may limit its immediate appeal in a price-sensitive market, Tesla’s arrival is expected to elevate the profile of India’s luxury EV segment.